Chartered Accountant
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Chartered Accountant (CA) is the title of members of a certain professional accountancy associations in the Commonwealth countries and Ireland. The term chartered originally referred to the Royal Charter under which the earliest bodies were incorporated. Subjects examined include financial accounting, management accounting, auditing, taxation and company law.
Chartered Accountants often act as auditors, although in most countries they must comply with additional requirements in order to do so.
Chartered Accountants originally worked only in public practices, selling advice and services to other individuals and businesses, but today in addition many work within private corporations and government bodies.
There are a number of other accountancy professional organisations, both within and outside the Commonwealth, whose members bear other designations, for example Certified Public Accountant. In some countries, such as Malaysia, Republic of Ireland and South Africa, the Chartered Accountant and Certified Public Accountant designations exist alongside each other.
United Kingdom
In the UK, there are no licence requirements for an individual to be describe himself/herself or practice as an accountant (except in the areas of audit or insolvency) but a Chartered Accountant must be a member of one of the following organisations:
- the Institute of Chartered Accountants in England & Wales (ICAEW) (designatory letters ACA or FCA)
- the Institute of Chartered Accountants of Scotland (ICAS) (designatory letters CA)
- the Institute of Chartered Accountants in Ireland (ICAI) (which is a UK body as it operates in Northern Ireland, designatory letters ACA or FCA)
Members of the ICAEW are either associates (ACA) or fellows (FCA). Fellowship is awarded for those who have significant experience (usually ten years following qualification).
Chartered Accountants engaging in practice (ie selling services to the public rather than acting as an employee) must gain a "practising certificate" by meeting further requirements such as purchasing adequate insurance and undergoing inspections.
Chartered Accountants holding "practising certificates" may also become "Registered Auditors", providing they can demonstrate the necessary professional ability in that area and submit to regular inspection.
Further restrictions apply to accountants who carry out insolvency work.
Similar professional titles which confer the same rights as Chartered Accountant are awarded to members of three other bodies:
- Chartered Certified Accountants are members of the Association of Chartered Certified Accountants.(Designatory letters ACCA or FCCA)
- Chartered Management Accountants are members of the Chartered Institute of Management Accountants. (Designatory letters ACMA or FCMA)
- Chartered Public Finance Accountants are members of the Chartered Institute of Public Finance and Accountancy.(Designatory letters CPFA)
Republic of Ireland
In the Republic of Ireland, Chartered Accountants are generally members of the Institute of Chartered Accountants in Ireland and use the designatory letters ACA or FCA. Chartered Accountants may also be members of the Institute of Chartered Accountants in England and Wales or the Institute of Chartered Accountants of Scotland.EU accountants
Under the Mutual Recognition Directive, EEA and Swiss nationals holding a professional qualification can become members of the equivalent bodies in another member state. They must, however, pass an aptititude test in understanding local conditions (which for accountants will include local tax and company law variations).The local title is however not available for use if the professional does not choose to join the local professional body. For example a holder of the French 'expert comptable' qualification could practice as an accountant in England without taking a local test but could only describe him/herself as "Expert Comptable (France)" not "Chartered Accountant". Within the EEA, only the UK and Ireland have bodies that issue the CA title.
Australia
Chartered Accountants in Australia belong to the Institute of Chartered Accountants of Australia and use the designatory letters CA.New Zealand
In New Zealand, Chartered Accountants belong to the [New Zealand Institute of Chartered Accountants] and use the designatory letters ACA or CA.Canada
In Canada, Chartered Accountants must be members of the Canadian Institute of Chartered Accountants (CICA). However, CICA membership must be held alongside membership of at least one CA institute (or ordre in French) of a Canadian province or territory. It is not possible to join the CICA directly.Auditing rights are regulated by provincial governments. In British Columbia, the Company Act provides that only CAs, CGAs, or anyone who has been granted an accounting licence by the provincial regulatory body may audit public companies. In Prince Edward Island, only qualified CAs and CGAs can perform public accounting and auditing in accordance with the Public Accounting and Auditing Act. In all other provinces, except Quebec and Ontario, only qualified CAs, CGAs, and CMAs may audit public companies.
Historically Quebec and Ontario only allowed CAs to audit public companies. However, CGAs and CMAs can audit a selected list of public bodies in Quebec. In 2004, the Ontario government passed legislation that would enable CGAs and CMAs to practice public accounting, but only after these bodies had demonstrated to a reconstituted Public Accountants Council that they could attain qualification standards of equivalent rigour to CAs. Until that process is completed sometime in 2007 or 2008, neither CGAs nor CMAs can will be eligible for public accounting licenses.
In Quebec, the situation is currently under review and challenge based on the Agreement of Internal Trade (AIT). In August 2005, the AIT issued a report recommending Quebec to change its legislation by opening public auditing to qualified accountants who are not CAs.
The size of the accounting bodies varies across Canada. In Ontario and Quebec, CA is substantially bigger than CGA or CMA. In Manitoba, CGA is the largest accounting body, whereas in British Columbia, CA and CGA are about the same size.
Canadian Chartered Accountants use the designatory letters CA. However, a Canadian CA who is a member of a different institute/ordre to that of the province or territory in which he resides may face a restriction on using designatory letters in that province or territory. It is however normally straightforward to transfer membership from one provincial institute to another.
South Africa
In South Africa only one accounting body manages the designation CA(SA) (Chartered Accountant (South Africa) namely SAICA (South African Institute of Chartered Accountants). A separate registration is needed for Chartered Accountants wishing to act as Auditors, namely RAA (Registered Accountant and Auditor). The RAA Designation are controlled by PAAB (Public Accountants and Auditors Board.).The public are often mistaken by thinking that all Chartered Accountants may act as Auditors. Since TOPP (Training Outside Public Practice) a great number of members earned the designation Chartered Accountant with no knowledge or experience in Auditing. These Chartered Accountants specialise in financial management and almost exclusively act as financial directors or managers for large corporations.
India
In India, the profession of chartered accountancy is handled by the Institute of Chartered Accountants of India.Chartered Accountancy Course is a professional course in Accounting introduced in India in 1949, with the enactment of the Chartered Accountants Act. The Institute of Chartered Accountants of India (ICAI) was formed in the same year. This Institute is both an examining and a licensing body. It is the responsibility of the institute to conduct the Chartered accountancy (CA) Course. The course involves a blend of theoretical education and practical training which run concurrently for a period of three years and equips a student with knowledge, ability, skills and other qualities required of a professional accountant.
Pakistan
In Pakistan the organization governing such accountants is the [Institute of Chartered Accountants of Pakistan] (ICAP).See also
- Accountant
- Accountancy qualifications and regulation
- Certified General Accountant
- List of accounting topics
- Professional certification
External links
- [Institute of Chartered Accountants of India]
- [Institute of Chartered Accountants of England and Wales]
- [Institute of Chartered Accountants in Australia]
- [Institute of Chartered Accountants of Nepal]
- [Canadian Institute of Chartered Accountants]
- [New Zealand Institute of Chartered Accountants]
- [Institute of Chartered Accountants of Scotland]
- [Institute of Chartered Accountants in Ireland]
- [Institute of Chartered Accountants of Pakistan]
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